Location: Kalamazoo-Portage, MI | Metro: Kalamazoo-Portage, MI MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $169,711 | 0.7% | D |
| 3BR | $1,590 | $226,730 | 0.7% | D |
| 4BR | $1,680 | $311,850 | 0.54% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 49004 in Cooper, Michigan, reveals that the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for Fiscal Year 2024 is $1,140. This figure is compared against the actual market rent, which stands at $1,203 as indicated by ZORI (Zillow's Observed Rent Index). At this rate, voucher tenants will cashflow marginally, requiring landlords to maintain properties at a competitive level to attract these tenants.
To further understand the investment landscape, the median home value in ZIP 49004 is $222,755. The rent-to-price ratio derived from this data is approximately 0.67%, suggesting that rental income represents a modest portion of the property's value. This ratio is critical for investors looking to balance between rental income and potential property appreciation.
Regarding the dynamics of days on market (DOM) and price-cut shares, both metrics are listed as N/A and 0.3%, respectively. These figures indicate that there is little to no need for price adjustments when selling homes in this area, which can be interpreted as a stable real estate market. However, for rental properties, the slight difference between the HUD FMR and the ZORI market rent implies that landlords must be mindful of property maintenance and management to ensure positive cash flow.
The strongest investor angle in ZIP 49004 is stability. With minimal fluctuations in home values and a manageable gap between HUD FMR and market rents, investors can expect consistent returns and a predictable market environment. This makes it an attractive option for those seeking long-term, low-risk investments in real estate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.